February 24, 2012
ENGROSSED
SENATE BILL No. 109
_____
DIGEST OF SB 109
(Updated February 22, 2012 3:06 pm - DI 101)
Citations Affected: IC 5-13.
Synopsis: Deposit of public funds by local units. Expands the existing
authority of counties and other political subdivisions to invest, through
a selected local depository institution, in certificates of deposit issued
by federally insured banks or savings and loan associations (wherever
located) to include the authority to invest in interest bearing deposit
accounts of federally insured banks or savings and loan associations
(wherever located) through the same procedure and under the same
conditions. Specifies that for purposes of this statute, the term "deposit
account" includes only: (1) accounts subject to withdrawal by
negotiable orders of withdrawal; (2) passbook savings accounts; (3)
certificates of deposit; and (4) money market deposit accounts.
Effective: July 1, 2012.
Holdman
, Walker, Skinner
(HOUSE SPONSORS _ HEATON, BURTON)
January 4, 2012, read first time and referred to Committee on Tax and Fiscal Policy.
January 19, 2012, amended, reported favorably _ Do Pass.
January 23, 2012, read second time, ordered engrossed.
January 24, 2012, engrossed. Read third time, passed. Yeas 50, nays 0. Pursuant to Senate
Rule 35(c), technical correction. Re-engrossed.
HOUSE ACTION
January 31, 2012, read first time and referred to Committee on Ways and Means.
February 9, 2012, reassigned to Committee on Financial Institutions.
February 23, 2012, reported _ Do Pass.
February 24, 2012
Second Regular Session 117th General Assembly (2012)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2011 Regular Session of the General Assembly.
ENGROSSED
SENATE BILL No. 109
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-13-4-7; (12)ES0109.1.1. -->
SECTION 1. IC 5-13-4-7 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 7. Except as provided in
IC 5-13-9-5.3, "deposit accounts" means any of the following:
(1) Any account subject to withdrawal by negotiable orders of
withdrawal, unlimited as to amount or number, and without
penalty, including NOW accounts.
(2) Passbook savings accounts.
(3) Certificates of deposit.
(4) Money market deposit accounts.
(5) Any interest bearing account that is authorized to be set up
and offered by a financial institution in the course of its respective
business.
SOURCE: IC 5-13-9-5.3; (12)ES0109.1.2. -->
SECTION 2. IC 5-13-9-5.3, AS ADDED BY P.L.115-2010,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 5.3. (a)
For purposes of this section, "deposit
account" does not include a deposit account described in
IC 5-13-4-7(5).
(b) In addition to the authority to invest in certificates of deposit
under section 5 of this chapter
and in transaction accounts under
section 4 of this chapter, and notwithstanding any other law, the board
of county commissioners of each county, and the fiscal body of each
political subdivision other than a county, may by ordinance or
resolution authorize the investing officer of each, respectively, to invest
public funds in
certificates of deposit interest bearing deposit
accounts in accordance with the following conditions:
(1) The funds are initially invested through a depository that is
selected by the investing officer.
(2) The selected depository arranges for the deposit of the funds
in
certificates of deposit interest bearing deposit accounts in
one (1) or more federally insured banks or savings and loan
associations, wherever located, for the account of the county or
political subdivision.
(3) The full amount of the principal and any accrued interest of
each
certificate of deposit are covered by insurance of any federal
deposit insurance agency.
(4) The selected depository acts as a custodian for the county or
political subdivision with respect to the
certificates of deposit
issued for its account. deposits.
(5)
At On the same
time date that the county's or political
subdivision's funds are deposited,
and the certificates of deposit
are issued, the selected depository receives an amount of deposits
covered by insurance of any federal deposit insurance agency
from customers of other institutions, wherever located, at least
equal to the amount of the funds invested by the county or
political subdivision through the selected depository.
(b) (c) Public funds invested in accordance with subsection
(a) (b)
are not subject to any security or pledging requirements that may
otherwise be applicable to the deposit or investment of public funds.